Marking a milestone toward building a new Penn Station, Amtrak and Penn Transformation Partners have signed a pre-development agreement – a legally binding contract that paves the way to a final design and detailed budget for the $7 billion-to-$8 billion project.

The pre-development phase will run through 2027, during which time Amtrak and the development partners will conduct “robust” community engagement before the final plan is completed, they said.

Amtrak owns Penn Station. Its role in transforming the station is led by special advisor Andy (“Train Daddy”) Byford, who won accolades for his term as head of New York City Transit from 2018-2020. PTP is a joint venture led by Halmar, a New York-based heavy construction firm that’s part of an Italian conglomerate, and Swedish-based construction and development giant Skanksa.

Amtrak and PTP are advancing a top-to-bottom transformation of the widely hated terminal, the busiest in the US with more than 600,000 weekday rail and subway riders. PTP, headed by CEO Peter Cipriano, was chosen by the US Department of Transportation last month.

Cipriano said, “Now, we will move forward as quickly and efficiently as possible to advance the design, establish a clear path to construction, and ensure the station reflects the needs of riders and the community.

“Thanks to our strong partnership with the Trump Administration, US Department of Transportation, and Amtrak, we are moving this once-in-a-generation project from vision to reality,” he said.

Unlike other proposals submitted to the DOT,  the plan doesn’t call for Madison Square Garden, which stands atop the terminal, to be moved.

The new configuration devised by architect Vishaan Chakrabarti essentially situates the Garden as a circle within the square of the new terminal. Penn Station’s main entrance will be moved to Eighth Avenue behind a grand, colonnaded facade. The upper half of the Garden’s unattractive, round  “drum”  will be reclad with limestone fins and protrude upward from the terminal.

The station’s up-and-down and confusing ticket counters, waiting areas and corridors will be replaced by a single-level, light-flooded concourse with soaring ceilings and stores, restaurants and customer service facilities to promote public activity.

Byford said, “The momentum continues to transform Penn Station. Having a renowned partner in PTP officially onboard  ensures the project will progress further and faster while meeting all deadlines on schedule.

“New Yorkers just experienced the Knicks championship right above the station and we’re committed to giving them something to be equally proud of within the same building where a banner will be raised,” Byford said.

The federal DOT invested $243 million to support the project’s early stages. The agency is also investing nearly $5 billion into Amtrak’s Northeast Rail Corridor.